(Bloomberg) -- Oil steadied after its biggest one-day drop in three weeks, with planned talks between Iran and the US later on Friday easing the immediate risk of military conflict and supply disruptions.

West Texas Intermediate traded near $63 a barrel, after losing 2.8% on Thursday, while Brent settled below $68. Futures sank after US President Donald Trump said Iran was negotiating, before recovering somewhat after Saudi Arabia cut prices for buyers in Asia by less than expected in a sign the kingdom has faith in demand for its barrels.

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Oil is now on track for its first weekly decline since mid-December, trimming some of the risk premium that’s formed because of the heightened tensions in the Middle East, which provides about a third of the world’s crude. Nevertheless, differing positions over the parameters of US-Iran negotiations make it unclear whether the two sides can realistically bridge major differences — meaning the talks will likely continue to overshadow physical oversupply.

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